We have recently released an article entitled Charles Akre's and John Neff's 10 Stocks Showing Significant Growth Possibilities In this piece, we will examine how O'Reilly Automotive, Inc. (NASDAQ:ORLY) measures up against other equities with significant growth prospects as identified by Charles Akre and John Neff.
The present market scenario in the U.S. is characterized by volatility becoming standard, and cautious investors are looking for shelter under the advice of experienced professionals. One such professional is Charles Akre, who founded Akre Capital Management Charles Akre has compiled a selection of stocks with significant growth potential through his rigorous investment strategy. Although he relinquished his position as Portfolio Manager in 2020, an impressive nine out of Akre Capital’s ten highest-held stocks were acquired prior to that year. Just one among the top ten is managed by John Neff, who oversees portfolio management at Akre Capital. In this discussion, we'll examine ten investments chosen by both Charles Akre and John Neff, along with assessing their future prospects. To better grasp why these particular stocks stand out, let us first consider the broader market environment that enhances their appeal.
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The performance of the market indices in the recent week suggests renewed investor confidence in equities. As per a report by the Wall Street Journal, this performance reflects optimism despite the economic data releases and corporate earnings reports showing adverse growth. Such market movements stress the significance of adopting a strategy when selecting a stock. The most often used and favored strategy involves letting yourself be guided by experienced investors like Akre.
At the heart of this revival is the fact that numerous growth stocks, particularly those from smaller companies, have surpassed value stocks in performance during 2023. This doesn’t diminish the appeal of value equities; rather, it highlights the market's inclination toward firms with substantial growth potential. As such, Akre Capital’s picks are well-placed to benefit from this expanding preference.
Investors should recognize that this superior performance isn’t merely a fleeting occurrence; historical evidence shows that growth stocks have reliably provided substantial gains over an extended timeframe. Starting from 2009, these types of stocks have largely led investor holdings, with one exception being during 2022 when rising interest rates temporarily impacted them negatively. As reported by CNBC, this enduring pattern enhances the appeal of adopting a focus on growth within investment strategies.
Moreover, the importance of pinpointing top-tier growth stocks becomes even more critical as market advancements are largely driven by a specific set of megacap companies. To illustrate, The Magnificent Seven collectively hold a market capitalization of around $11.5 trillion. This focus aligns with Akre Capital’s investment approach, which centers on selecting high-quality growth equities for their portfolios.
Here, the ten choices featured from Akre Capital’s portfolio aren’t arbitrary; they’re carefully curated following an extensive analysis of the firm’s financial health and its prospects for sustained expansion. This method closely matches today’s investing climate, wherein savvy investors address market hurdles by reinforcing their holdings with firms showing strong growth tendencies.
Before diving into our top selections, it’s crucial for investors to understand the strategic insights that guided us in compiling this list. Our recommendations aren’t just based on following today’s market fads; instead, they stem from a thorough comprehension of elements fostering enduring expansion.
Our Methodology
To compile our roster of Akre Capital's 10 highly promising stock selections, we adhered to specific guidelines. Each equity listed belongs within Akre Capital’s investment holdings. After ensuring these securities met this essential requirement, we prioritized those exhibiting substantial portfolio weightings. Our aim here was to spotlight the most favored choices among seasoned investors. Additionally, we assessed each stock based on its projected growth trajectory, which reflects the anticipated increase in investor wealth. These evaluations also informed their ranking order. The statistics presented throughout were sourced exclusively from reputable financial records and research analyses, with all figures current up until April 26, 2025.
Why do we focus on the stocks that hedge funds heavily invest in? It’s straightforward: our analysis indicates that mimicking the leading stock choices from premier hedge funds allows us to surpass market performance. Each quarter, our quarterly newsletter's approach chooses 14 small-cap and large-cap stocks, achieving a return of 373.4% since May 2014, which significantly exceeds its benchmark by 218 percentage points. see more details here ).
A technician adeptly replaces non-original components on a vehicle inside an automotive workshop.
O'Reilly Automotive, Inc. (NASDAQ: ORLY )
% of your portfolio held: 9.18%
Upside Potential: 11.36%
Based in Missouri, O'Reilly Automotive, Inc. (NASDAQ: ORLY) manages an extensive network of auto parts retailers throughout the U.S. and Mexico. Their clientele includes both professionals who handle installations and individuals who prefer DIY projects. They cater to this broad audience through their comprehensive selection of aftermarket car components, equipment, and add-ons. In a competitive landscape dominated by companies such as Advance Auto Parts, O’Reilly distinguishes itself via its two-pronged market strategy, rapid product circulation, and exclusive logistics infrastructure. By integrating services focused on meeting clients' needs alongside strategically placed central hubs for efficiency, they maintain a robust presence within the industry.
O'REILLY AUTOMOTIVE INC. (NASDAQ:ORLY), which makes up 9.18% of the portfolio, is considered one of Charles Akre’s top choices. Since our records began in 2011, ORLY has consistently appeared in his list of preferred stocks. This preference stems from the steady sales growth demonstrated by the company. In their announcement for fiscal year 2024, they reported a 2.9% rise in same-store sales. Notably, this represents the firm's 32nd successive year of expansion. Looking ahead to 2025, the business intends to launch approximately 210 new outlets, supporting their projected diluted earnings per share range of between $42.90 and $43.40.
Given the favorable market conditions supporting the stock, analysts predict an upward potential of 11.36% for O'Reilly Automotive, Inc. (NASDAQ:ORLY). This makes it a compelling option for investors looking for shares backed by Akre’s conviction in its growth prospects.
Overall ORLY ranks 9th On our list featuring Charles Akre’s and John Neff’s top stock selections with significant growth prospects, we recognize the appeal of ORLY as an investment option. However, we firmly believe that certain artificial intelligence stocks present even stronger opportunities for achieving substantial returns over a shorter period. One particular AI stock has seen gains year-to-date, whereas many well-known AI equities have declined by approximately 25%. Should you be interested in exploring an AI stock offering better potential compared to ORLY yet trading below five times its earnings, consider reviewing our detailed report on this subject. cheapest AI stock .
READ NEXT: 20 Top AI Stocks You Should Consider Purchasing Today and 30 Top Stocks Preferred by Billionaires for Investment .
Disclosure: None. This piece was initially published at Insider Monkey .
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